Maturities and sales of available-for-sale
securities and other
investments

68

280

Payments made in connection with business
acquisitions, net

(9,770

)

(11,248

)

Net cash used in investing activities

(10,664

)

(13,711

)

Cash flows from financing activities:

Issuance of commercial paper and notes payable, net

5,036

5,015

Issuance of debt

67

3,121

Payment of debt

(792

)

(1,843

)

Issuance of common stock under employee stock plans

463

1,810

Repurchase of common stock

(1,900

)

(9,620

)

Excess tax benefit from stock-based compensation

80

293

Dividends

(196

)

(796

)

Net cash provided by (used in) financing activities

2,758

(2,020

)

Decrease in cash and cash equivalents

(4,630

)

(1,140

)

Cash and cash equivalents at beginning of period

14,783

11,293

Cash and cash equivalents at end of period

$

10,153

$

10,153

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

(In millions)

Three months ended

October 31,
2008

July 31,
2008

October 31,
2007 (a)

Net revenue:

Enterprise Storage and Servers

$

5,059

$

4,741

$

5,108

HP Services

8,639

4,753

4,348

HP Software

855

781

759

Technology Solutions Group

14,553

10,275

10,215

Personal Systems Group

11,179

10,254

10,133

Imaging and Printing Group

7,503

6,979

7,554

HP Financial Services

691

680

657

Corporate Investments

246

271

210

Total Segments

34,172

28,459

28,769

Eliminations of intersegment net revenue and other

(569

)

(427

)

(476

)

Total HP Consolidated

$

33,603

$

28,032

$

28,293

Earnings (Loss) from operations:

Enterprise Storage and Servers

$

705

$

544

$

736

HP Services

920

574

515

HP Software

195

122

145

Technology Solutions Group

1,820

1,240

1,396

Personal Systems Group

616

587

589

Imaging and Printing Group

1,162

1,048

1,094

HP Financial Services

51

51

48

Corporate Investments

9

26

(5

)

Total Segments

3,658

2,952

3,122

Corporate and unallocated costs and eliminations

(152

)

(85

)

(197

)

Unallocated costs related to stock-based compensation
expense

(104

)

(120

)

(122

)

Amortization of purchased intangible assets

(337

)

(213

)

(187

)

In-process research and development charges

(32

)

-

(4

)

Restructuring

(251

)

(5

)

20

Acquisition-related charges

(41

)

-

-

Interest and other, net

(98

)

23

67

Total HP Consolidated Earnings Before Taxes

$

2,643

$

2,552

$

2,699

(a)

Certain fiscal 2008 organizational reclassifications have been
reflected retroactively to provide improved visibility and
comparability. For each of the quarters in fiscal year 2007, the
reclassifications resulted in the transfer of revenue and operating
profit among the Enterprise Storage and Servers, HP Services and HP
Software segments within the Technology Solutions Group. There was
no impact on the previously reported financial results for the other
segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

(In millions)

Twelve months ended
October 31,

2008

2007 (a)

Net revenue:

Enterprise Storage and Servers

$

19,400

$

18,639

HP Services

22,397

16,570

HP Software

3,029

2,531

Technology Solutions Group

44,826

37,740

Personal Systems Group

42,295

36,409

Imaging and Printing Group

29,385

28,465

HP Financial Services

2,698

2,336

Corporate Investments

965

762

Total Segments

120,169

105,712

Eliminations of intersegment net revenue and other

(1,805

)

(1,426

)

Total HP Consolidated

$

118,364

$

104,286

Earnings (Loss) from operations:

Enterprise Storage and Servers

$

2,577

$

2,148

HP Services

2,491

1,787

HP Software

461

221

Technology Solutions Group

5,529

4,156

Personal Systems Group

2,375

1,939

Imaging and Printing Group

4,590

4,315

HP Financial Services

192

155

Corporate Investments

49

(57

)

Total Segments

12,735

10,508

Corporate and unallocated costs and eliminations

(460

)

(439

)

Unallocated costs related to stock-based compensation
expense

(479

)

(507

)

Amortization of purchased intangible assets

(967

)

(783

)

In-process research and development charges

(45

)

(190

)

Restructuring charges

(270

)

(387

)

Acquisition-related charges

(41

)

-

Pension curtailments and pension settlements, net

-

517

Interest and other, net

-

458

Total HP Consolidated Earnings Before Taxes

$

10,473

$

9,177

(a)

Certain fiscal 2008 organizational reclassifications have been
reflected retroactively to provide improved visibility and
comparability. For fiscal year 2007, the reclassifications resulted
in the transfer of revenue and operating profit among the Enterprise
Storage and Servers, HP Services and HP Software segments within the
Technology Solutions Group. There was no impact on the previously
reported financial results for the other segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT / BUSINESS UNIT INFORMATION

(Unaudited)

(In millions)

Three months ended

October 31,
2008

July 31,
2008

October 31,
2007 (a)

Net revenue:

Industry standard servers

$ 2,977

$ 2,874

$

3,059

Business critical systems

935

829

1,034

Storage

1,147

1,038

1,015

Enterprise Storage and Servers

5,059

4,741

5,108

Technology services

2,447

2,394

2,229

Outsourcing services

1,468

1,456

1,271

Consulting and integration

868

903

848

EDS (b)

3,856

-

-

HP Services

8,639

4,753

4,348

Business technology optimization (c)

714

642

620

Other (c)

141

139

139

HP Software

855

781

759

Technology Solutions Group

14,553

10,275

10,215

Notebooks

6,270

5,350

5,164

Desktops

4,146

4,158

4,222

Workstations

473

468

473

Handhelds

79

90

108

Other

211

188

166

Personal Systems Group

11,179

10,254

10,133

Commercial Hardware

1,695

1,567

1,880

Consumer Hardware

983

861

1,251

Supplies

4,825

4,551

4,423

Imaging and Printing Group

7,503

6,979

7,554

HP Financial Services

691

680

657

Corporate Investments

246

271

210

Total Segments

34,172

28,459

28,769

Eliminations of intersegment net revenue and other

(569

)

(427

)

(476

)

Total HP Consolidated

$ 33,603

$ 28,032

$

28,293

(a) Certain fiscal 2008 organizational reclassifications have been
reflected retroactively to provide improved visibility and
comparability. For each of the quarters in fiscal year 2007, the
reclassifications resulted in the transfer of revenue among
Enterprise Storage and Servers, HP Services and HP Software
segments within the Technology Solutions Group. In addition,
revenue was transferred among the business units within the
Imaging and Printing Group and among the business units within the
Personal Systems Group, but there was no change to the previously
reported revenue for either segment as a whole. There was no
impact on the previously reported financial results for the HP
Financial Services and Corporate Investments segments.

(b) On August 26, 2008, HP completed its acquisition of Electronic
Data Systems Corporation ("EDS"). HP has included the results of
EDS for the period following the completion of the acquisition
within HP Services for financial reporting purposes.

(c) The OpenView business unit was renamed as “Business Technology
Optimization” and the OpenCall and Other business unit was renamed
as “Other” effective fiscal 2008. The renamed "Other" business
unit includes primarily the OpenCall and Business Information
Optimization products.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT / BUSINESS UNIT INFORMATION

(Unaudited)

(In millions)

Twelve months ended
October 31,

2008

2007 (a)

Net revenue:

Industry standard servers

$ 11,657

$ 11,380

Business critical systems

3,538

3,553

Storage

4,205

3,706

Enterprise Storage and Servers

19,400

18,639

Technology services

9,413

8,539

Outsourcing services

5,597

4,839

Consulting and integration

3,531

3,192

EDS (b)

3,856

-

HP Services

22,397

16,570

Business technology optimization (c)

2,497

2,004

Other (c)

532

527

HP Software

3,029

2,531

Technology Solutions Group

44,826

37,740

Notebooks

22,657

17,650

Desktops

16,626

15,889

Workstations

1,902

1,721

Handhelds

360

531

Other

750

618

Personal Systems Group

42,295

36,409

Commercial Hardware

6,799

6,863

Consumer Hardware

3,998

4,496

Supplies

18,588

17,106

Imaging and Printing Group

29,385

28,465

HP Financial Services

2,698

2,336

Corporate Investments

965

762

Total Segments

120,169

105,712

Eliminations of intersegment net revenue and other

(1,805

)

(1,426

)

Total HP Consolidated

$ 118,364

$ 104,286

(a) Certain fiscal 2008 organizational reclassifications have been
reflected retroactively to provide improved visibility and
comparability. For fiscal year 2007, the reclassifications
resulted in the transfer of revenue among Enterprise Storage and
Servers, HP Services and HP Software segments within the
Technology Solutions Group. In addition, revenue was transferred
among the business units within the Imaging and Printing Group and
among the business units within the Personal Systems Group, but
there was no change to the previously reported revenue for either
segment as a whole. There was no impact on the previously reported
financial results for the HP Financial Services and Corporate
Investments segments.

(b) On August 26, 2008, HP completed its acquisition of Electronic
Data Systems Corporation ("EDS"). HP has included the results of
EDS for the period following the completion of the acquisition
within HP Services for financial reporting purposes.

(c) The OpenView business unit was renamed as “Business Technology
Optimization” and the OpenCall and Other business unit was renamed
as “Other” effective fiscal 2008. The renamed "Other" business
unit includes primarily the OpenCall and Business Information
Optimization products.

(a) HP's basic earnings per share was calculated based on net
earnings and the weighted-average
number of shares
outstanding during the reporting period.

(b) The
diluted earnings per share included additional dilution from
potential issuance of
common stock, such as stock issuable
pursuant to exercise of stock options, vesting of
restricted
stock units and conversion of debt, except when such issuances
would be anti-dilutive.

(a) HP's basic earnings per share was calculated based on net
earnings and the
weighted-average number of shares
outstanding during the reporting period.

(b) The
diluted earnings per share included additional dilution from
potential
issuance of common stock, such as stock issuable
pursuant to exercise of stock
options, vesting of restricted
stock units and conversion of debt, except when such
issuances
would be anti-dilutive.

(a) HP's basic non-GAAP earnings per share was calculated based on
non-GAAP net earnings and the weighted-average number of shares
outstanding during the reporting period.

(b) HP’s diluted non-GAAP earnings per share included additional
dilution from potential issuance of common stock, such as stock
issuable pursuant to exercise of stock options, vesting of
restricted stock units and conversion of debt, except when such
issuances would be anti-dilutive.

(a) HP's basic non-GAAP earnings per share was calculated based on
non-GAAP net
earnings and the weighted-average number of
shares outstanding during the
reporting period.

(b)
HP’s diluted non-GAAP earnings per share included additional
dilution from potential
issuance of common stock, such as
stock issuable pursuant to exercise of stock
options, vesting
of restricted stock units and conversion of debt, except when such
issuances
would be anti-dilutive.